SPS Commerce (NASDAQ:SPSC) and comScore (NASDAQ:SCOR) Head-To-Head Contrast

SPS Commerce (NASDAQ:SPSC) and comScore (NASDAQ:SCOR) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Insider & Institutional Ownership

99.0% of SPS Commerce shares are held by institutional investors. Comparatively, 42.2% of comScore shares are held by institutional investors. 1.0% of SPS Commerce shares are held by company insiders. Comparatively, 11.1% of comScore shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for SPS Commerce and comScore, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SPS Commerce	1	7	2	1	2.27
comScore	1	0	1	0	2.00

SPS Commerce presently has a consensus price target of $77.18, suggesting a potential upside of 31.57%. Given SPS Commerce’s stronger consensus rating and higher probable upside, analysts plainly believe SPS Commerce is more favorable than comScore.

Valuation & Earnings

This table compares SPS Commerce and comScore”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SPS Commerce	$762.08 million	2.85	$93.34 million	$2.40	24.44
comScore	$357.47 million	0.32	-$10.00 million	$1.09	6.96

SPS Commerce has higher revenue and earnings than comScore. comScore is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

SPS Commerce has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, comScore has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Profitability

This table compares SPS Commerce and comScore’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SPS Commerce	11.92%	12.43%	10.37%
comScore	25.41%	806.73%	24.44%

Summary

SPS Commerce beats comScore on 10 of the 15 factors compared between the two stocks.

About SPS Commerce

SPS Commerce, Inc. provides cloud-based supply chain management solutions in the United States and internationally. It offers solutions through the SPS Commerce, a cloud-based platform that enhances the way retailers, grocers, suppliers, distributors, and logistics firms manage and fulfill omnichannel orders, optimize sell-through performance, and automate new trading relationships. The company also provides Fulfillment, an electronic data interchange solution that scales as a business grows, where companies use a single system to manage orders and logistics from various sales channels, including wholesale, eCommerce, and marketplaces; and Analytics product that enables organizations to enhance visibility into how products are selling through a single connection across various sales channels, including wholesale, eCommerce, and marketplaces, as well as enhances access and usage of sales and inventory data through a combination of analytics applications, network of connections, and industry-leading expertise. In addition, it offers various complimentary products, such as assortment product, which simplifies the communication of robust, accurate item data by automatically translating item attributes, and hierarchies; and community product that allows organizations to accelerate digitization of their supply chain and improve collaboration with suppliers through change management and onboarding programs. The company was formerly known as St. Paul Software, Inc. and changed its name to SPS Commerce, Inc. in May 2001. SPS Commerce, Inc. was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.

About comScore

comScore, Inc. operates as an information and analytics company that measures audiences, consumer behavior, and advertising across media platforms in the United States, Europe, Latin America, Canada, and internationally. The company provides digital ad solutions, including Media Metrix Multi-Platform and Mobile Metrix, which measure websites and applications on computers, smartphones, and tablets; Video Metrix that delivers measurement of digital video consumption; Plan Metrix, which offers understanding of consumer lifestyle; Total Home Panel Suite, which capture OTT, connected TV, and IOT device usage and content consumption; CCR, which enhances validated campaign essentials verification of mobile and desktop video campaigns; XMedia Enhanced, which provides a deduplicated view of national programming content; Comscore marketing solutions; Lift Models, which measures the impact of advertising on a brand; Survey Analytics, which measure various consumer insights including brand health metrics; and Activation Solutions, including audience activation and content activation. The company's cross platform solutions products and services comprises Comscore TVNational that helps customers understand the performance of network advertising campaigns; Comscore TVLocal allows customers to understand consumer viewing patterns and characteristics; OnDemand Essentials that provides transactional tracking and reporting; Movie Solutions; and Hollywood Software Suite. In addition, it offers custom solutions for planning, optimization, and evaluation of advertising campaigns and brand protection. Further, the company provides products that measure movie viewership and box office results by capturing movie ticket sales in real time or near real time. It serves digital publishers, television networks, movie studios, content owners, brand advertisers, agencies, and technology providers. The company was incorporated in 1999 and is headquartered in Reston, Virginia.